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Oil rose on speculative buying

Oil rose on speculative buying
Oil rose on speculative buying

Oil rose this Monday from speculative purchases after a moderate opening, taking the main barrels above $80.

In the morning, the economic data in Chinawhich underline an uneven recovery for the world’s largest crude oil importer, countered hopes of a boost in fuel demand due to the summer season in the northern hemisphere, painting the tables red.

However, by the end of the day, the Brent crude oil futures for delivery in August they gained 1.97%, up to $84.25 a barrel. For their part, US crude oil futures West Texas Intermediate (WTI) for delivery in July they gained 2.39%, to $80.33.

Last week, both benchmarks recorded their first weekly rise in four weeks, due to confidence that inventories of Petroleum will be reduced as the summer season begins.

In China, industrial production increased 5.6% in the 12 months to May, against 6.7% in the April measurement, below the 6.2% expected by the market. Investments in the real estate sector fell 10.9% in May compared to April, when they had fallen 10.4% compared to the previous month. However, against all odds, crude oil prices recovered from that initial drop.

The reports of the OPEC and of the International Energy Agency last week, although they disagreed about the strength of the economy’s growth oil demand This year, they had supported confidence that inventories would be reduced in the second half.

“The market has the feeling that it reacted very abruptly” after the meeting of OPEC and its allies in Opec+ on June 2, he explained. Andy Lipowfrom Lipow Oil Associates.

Even so, analysts Bank of America (BofA) pointed out in a report that, although the market consensus is that oil prices rise in the third quarter, there is a risk for prices if the weak balance between supply and demand persists.

“It is not yet clear whether balance sheets will strengthen enough in the third quarter for the market to move from an apparent surplus to a deficit that can lift prices,” wrote BofA analysts, including Francisco Blanch.

On the geopolitical front, concerns about a broader war in Half East persisted after Israel said on Sunday that the intensification of cross-border shooting by the Lebanese movement Hezbollah could trigger a serious escalation.

Source: Ambito

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